The trade balance resulted in a surplus of SEK 35 billion, which is an increase compared with the corresponding quarter last year. Exports and imports both continued to increase this quarter compared with the same period last year. However, exports increased significantly more than imports.

A weaker services account

The services account resulted in a surplus of SEK 20 billion. Unlike the trade balance, the services account decreased compared with last year. The financial services and data services items decreased, and mainly contributed to the decreased surplus in the trade balance.

Export of services amounted to SEK 159 billion and increased by SEK 7 billion, while import of services amounted to SEK 139 billion, and increased by SEK 10 billion compared with the corresponding quarter last year.

Export of research and development services and the use of intellectual property rights increased the most among services, while exports of financial services decreased the most compared with the corresponding quarter last year.

Imports of financial services and data services increased the most among services compared with the corresponding quarter last year.

Lower return on Swedish portfolio investments

Primary income showed a deficit of SEK 5 billion in the quarter, which also resulted in a decrease in the deficit of over SEK 9 billion compared with the corresponding quarter last year. Compensation of employees resulted in a surplus of almost SEK 4 billion, while return on capital resulted in a deficit of SEK 9 billion.

Income on direct investment contributed a surplus of SEK 18 billion, which is a marginal increase compared with the corresponding quarter last year.

Income on portfolio investments resulted in a deficit of SEK 27 billion, which is a decrease in the deficit of over SEK 8 billion compared with the same period last year. The deficit reduction was primarily due to lower dividends on Swedish shares, which decreased by SEK 7 billion, as well as a decline in the interest rate on Swedish debt securities.

Secondary income resulted in a deficit of SEK 11 billion, which can be compared with a deficit of SEK 7 billion in the corresponding quarter of the previous year.

Capital outflow in the financial account

The financial account balance resulted in a net capital outflow of SEK 170 billion. Direct investments, portfolio investments, other investments and reserve assets resulted in a capital outflow, while financial derivatives resulted in a capital inflow in the second quarter of 2017.

Direct investments resulted in a capital outflow of SEK 82 billion. Swedish direct investment abroad increased by SEK 110 billion, while foreign direct investment in Sweden increased by SEK 28 billion.

Portfolio investment transactions resulted in a net capital outflow of SEK 46 billion. Foreign investors increased their portfolio investments in Sweden by SEK 3 billion, while Swedish investors increased their portfolio investments abroad by SEK 49 billion.

Swedish investors decreased their holdings in foreign debt securities by SEK 20 billion, of which holdings in long-term debt securities accounted for the largest decrease. Holdings in foreign shares and funds increased by SEK 69 billion in the quarter, of which shares accounted for most of this increase, by SEK 45 billion.

Foreign investors’ holdings in Swedish debt securities decreased by SEK 12 billion. Foreign holdings in long-term debt securities decreased by SEK 19 billion, while holdings in short-term debt securities increased by SEK 8 billion. Long-term debt securities issued by non-financial corporations accounted for the largest decrease, representing SEK 12 billion. The increase in short-term debt securities is mainly due to foreign purchases of short-term bank securities.

Other investments resulted in a capital outflow of SEK 49 billion. Other investments abroad decreased by SEK 155 billion, while foreign other investments in Sweden decreased by SEK 204 billion.

Reserve assets resulted in a capital outflow of SEK 4 billion in the second quarter. Financial derivatives resulted in a capital inflow of SEK 12 billion.

Net assets in the international investment position increased

Sweden’s international investment position showed net external assets of SEK 470 billion at the end of the second quarter 2017. This was an increase compared with the previous quarter, when net assets amounted to SEK 378 billion.

Direct investments contributed most to the increase of net assets through increased assets abroad, while foreign assets in Sweden decreased. Other investments also contributed to the increased assets through a decrease of external debts. Net assets also increased in portfolio investments, albeit to a lesser extent. Holdings in debt securities increased, while net holdings in shares and funds decreased. Both assets and liabilities in financial derivatives decreased, which led to a decrease of net assets. Reserve assets also decreased.

Sweden’s largest net external assets are in direct investments, other investments and reserve assets. Sweden’s largest net liabilities are in debt securities in portfolio investments.

Balance of payments for the third quarter 2017 will be published on 2017-12-01.